From AutoAccounting/Account Generator to Subledger Accounting in Oracle Projects

Edward Charity, Jr Project Management Systems Consultants (PMSC), LLC With the introduction of Subledger Accounting (SLA) in Release 12 of the Oracle Applications Suite, current and future Oracle Projects implementers and users will need to familiarize themselves with SLA and understand its impact on their current and future Projects implementations. This paper will explain SLA and highlight specific functionality geared toward the Oracle Projects suite. It will compare and contrast SLA’s functionality versus AutoAccounting and Account Generator. In addition, it will detail requirements for upgrading existing installations. Finally, it will outline planning for new installations. Background of the Projects Suite The Oracle Projects Suite, as we know it today, was first introduced in 1993 as Project Accounting. It consisted of Project Costing and Project Billing. It has evolved into the current suite of applications that include: Project Foundation; Project Costing; Project Billing; Project Management; Project Collaboration; Project Resource Management; and Project Portfolio Analysis. One other product, Project Contracts, is often considered a part of the Projects Suite. It is, however, a part of the Contracts Suite. Release 12.0 of the Oracle E-Business Suite was release in February of 2007. The main enhancement of Oracle Projects in this release was the uptake of Subledger Accounting (SLA). This paper focuses on Subledger Accounting and its workings and integration with Oracle Projects, in particular Project Costing and. Billing. Evolution of Projects-based Accounting Engines The original release of Project Accounting (PA) included the introduction of AutoAccounting (AA). AA was used by PA to derive accounting for cost, revenue, and billing transactions originating from within PA. AA has remained pretty much the same since its introduction. It has been enhanced by the addition of new transaction functions and parameters, to accommodate the growth and maturity of PA, but the core functionality has remained the same. Along with AutoAccounting for transactions originating from within, PA used Flexbuilder to derive accounting for transactions originating from Oracle Purchasing and Payables. Both AutoAccounting and Flexbuilder were Oracle Forms-based applications. In Oracle Applications Release 11, Flexbuilder was replaced by Account Generator. It retained most of the functions of Flexbuilder, but was Oracle Work-flow based.

Task.T). An Event Class represents a category of business event for a particular transaction type or document. In Release 12 of the Oracle Projects Suite. it coexists with AutoAccounting and Account Generator. It stores a complete and balanced Subledger JE in a common model for each “business event” that requires accounting.E. Subledger Accounting Concepts and Definitions Accounting Events represent transactions that have an accounting impact. and 3) SLA can create multiple representations of each Subledger Transaction. AutoAccounting/Account Generator and Subledger Accounting share the following characteristics: 1) Project-related information is entered: Project. and Supplier Cost. formally introduced as the successor accounting engine with Release 12. and Budgets. An Event Type represents a business operation that you can perform for an Event Class. Process Categories are collections of one or more logically related event classes. The major differences with SLA include: 1) All Subledger Applications post Journal Entries to SLA instead of directly to General Ledger. Oracle Projects uses three Event Entities: Expenditures. As of Release 12. They also provide the lowest level of detail for storing accounting definitions. Revenue. We expect it to replace both in Oracle’s Fusion Applications. Event Classes group similar Event Types and enable the sharing of accounting definitions.Subledger Accounting was informally introduced into the Oracle E-Business Suite prior to Release 12. As an example: The Event Class “Supplier Cost” is represented by Event Types of “Expense Report Cost Distribution” and “Supplier Cost Distribution”. and 3) Implementation-defined Rules derive Accounting Combinations. Expenditure Type. Oracle Projects generates accounting events for the business events that it processes. 2) SLA posts all Subledger Entries to General Ledger. however. and Expenditure Organization (aka P. 2) An Accounting Combination (aka Accounting Flexfield) is generated. It creates the final accounting for Subledger Journal Entries (JEs) and transfers the accounting to (GL). Usage Cost. Event Entities allow SLA to handle the accounting for similar business events in a consistent manner.O. It was. Predefined Event Classes for the Event Entity Expenditures include Labor Cost. SLA can create more than one accounting representation for each transaction. What is Subledger Accounting ? Subledger Accounting is an intermediate step between each of the Subledger applications and Oracle General Ledger (GL). SLA is the standard accounting engine for all Subledger Accounting Applications. . They are used in the definition of Event Classes.

Sources are pieces of information SLA uses to determine how to create accounting for an Accounting Event. Sources are “assigned” to either an Event Entity or an Event Class to make them available for the creation of Subledger Journal Entries. It groups AADs from subledger applications such as Projects. Journal Entry Descriptions (JEDs) determine both the content and sequence in which elements of the description appear. or Encumbrance entry. Journal Line Definitions group Journal Line Types. SLA does not support the definition of Account Derivation Rules based on SQL select statements. Source examples for Projects include: Agreement Number.The Budgets Accounting Event Entity has one Event Class and Two Event Types predefined. Journal Line Types determine the characteristics of Subledger Journal Entries for an Event Class. AADs are assigned to Ledgers (formerly Sets of Books (SOBs). that determine how the SLA program processes Accounting Events to create Subledger and General Ledger entries. Accounting Events are generated for the Budget Event Class when you enable either Top-Down or Bottom-Up budget integration for a project budget (See appendix for further discussion on Budget Integration and Subledger Accounting). They are PL/SQL-based and use predefined sources and constant values as parameters. . and Journal Entry Descriptions into a complete set of Journal Line Types within an Event Class or Event Type. i. and Expenditure Type. Custom Sources are optionally defined sources used to extend the list of sources available to application accounting definitions. Account Derivations Rules. JEDs are assigned to headers and lines in the Application Accounting Definition. A Subledger Accounting Method is a group of common Application Accounting Definitions (AADs) that determines how SLA processes Accounting Events. SLA assigns these descriptions to the journal header and lines when it creates the draft of final accounting (There are no predefined JEDs for Projects). Custom Sources are created to meet complex rule definition requirements. Accounting Derivation Rules determine the Accounting Flexfield (AFF) values for Subledger Journal Entries. whether the JE is a debit or a credit. Class Category. whether matching lines are merged. The characteristics are: whether the JE is an Actual. Projects predefines the Project Standard Accounting Application Accounting Definition.e. AADs assign Journal Line Definitions to Event Class and Event Type combinations. Application Accounting Definitions (AADs) are collections of setup components for a Subledger application. These rules are determined in SLA (as opposed to the subledger application) and can generate either a value for a single AFF segment or the entire AFF. Projects. and whether the data is transferred to GL in summary or detail form. Budget.

Parameter-. .g. SOBs are replaced with the concept of Ledgers. Attribute = Entered Amount. Chart of Accounts. In addition. e. By example: Event Class = Labor Cost. The Raw Cost Amount from the transaction or transactions is assigned to the Entered Amount field in the SLA Journal Entry. Sources. the concept of Sets of Books (SOBs) is obsolete. or SQL Selectbased 3) Assign Rules to Functions The steps to configure Subledger Accounting are: 1) Define Journal Line Types ** 2) Define Journal Entry Descriptions ** 3) Define Mapping Sets* 4) Define Accounting Derivations Rules ** 5) Define Journal Line Definitions ** 6) Define Application Accounting Definitions ** 7) Define Subledger Accounting Methods ** 8) Assign Subledger Accounting Methods to Ledger(s) ** Predefined by Oracle Projects * Optional In Oracle E-Business Suite Release 12.Accounting Attributes are values that the Create Accounting process needs to successfully create Subledger Journal Entries. and Calendar. Ledgers include Currency. Similar to SOBs. The following chart shows the relationship of these components. as described above. Ledgers include Subledger Accounting Methods. A Subledger Accounting Method plus a new/different Ledger equals an additional Accounting Representation. Source = Raw Cost. Constant-. The combination of Subledger Accounting Method and Ledger is called an Accounting Representation. Putting It All Together The steps to configure AutoAccounting are: 1) Define Lookup Sets 2) Define AutoAccounting Rules. are assigned to Accounting Attributes.

Ledger = C.O.A + Currency + Subledger Accounting Method Application Accounting Definition Journal Line Definitions Journal Line Types Mapping Sets Standard Accrual JE Header and Lines + Calendar Journal Entry Descriptions Account Derivation Rules .

Principally. AutoAccounting. the process of interface and tie back of Cost and Revenue transactions to General Ledger are gone. . Debit for Revenue. they are: 1) Continue to use the existing AutoAccounting/Account Generator(AA/AG) as is – SLA uses the default Accounting Flexfield values generated by AA/AG. The former creates the balancing entry: Credit for Cost.Functionality Equivalents The chart below shows the functionality equivalents between Flexbuilder/Account Generator. and PRC: Create Accounting. FlexBuilder/Account Generator Value Sets/Lookup Sets Input Value User Defined Parameters Predefined Parameters/Attribute Assignments to Functions Functions/Item Type Parameter Assignments/Process AutoAccounting Lookup Sets Intermediate Value AutoAccounting Rules Parameter AutoAccounting Function Transactions AutoAccounting Functions AutoAccounting Rule Assignment Subledger Accounting Mapping Sets Input Value Account Derivation Rules Source Conditions on Account Derivation Rules Journal Line Types Journal Lines Definitions: Assign Account Derivation Rules to Journal Line Types Processing Changes With the uptake of SLA in Oracle Projects Release 12. 2) Define alternative accounting rules in SLA – minimal AA/AG still required. and Subledger Accounting. SLA overwrites default values provided by AA/AG. They are replaced by two new processes: PRC: Generate Cost or Revenue Accounting Events. there are a number of changes to some of the familiar concurrent process. The latter posts the entries in SLA and optionally posts and imports into Oracle General Ledger Upgrading Existing Installations There are three options for upgrading existing Projects installations to use SLA.

LLC. Evaluate benefits of SLA. the same general rules and cautions apply that applied to AA/AG implementations. There are minimal requirements for straightforward upgrade from preRelease 12 to Release 12. and desired results 4) Understand all accounting transactions 5) Test all possible scenarios – automate if possible 6) Document for current and future users Suggested Resources The following sources should be consulted to assist in the implementation of SLA: 1) Oracle Projects Implementation Guide – MetaLink Document Number B2562302 2) Oracle Projects Fundamental Guide – MetaLink Document Number B25617-02 3) Subledger Accounting Implementation Guide – MetaLink Document Number B13984-02 Conclusion Subledger Accounting concepts are very similar to AutoAccounting/Account Generator concepts. LLC are based in Arlington. Prior to founding PMSC. SLA will be the accounting engine in Fusion applications Edward Charity. The SLA concepts used by Oracle Projects are applicable to all Subledger applications. Virginia (Washington. AutoAccounting/Account Generator will eventually be phased out and replaced by SLA. and deployment of Enterprise Project Management Systems. is President and Chief Executive Consultant of Project Management Systems Consultants (PMSC). development. business rules. PMSC is a boutique Management Consulting firm specializing in the design. . Mr. Charity has been working with Oracle’s Enterprise Project Management Suite (aka Projects/Project Accounting) since 1993. Charity was a Managing Principal Consultant at Oracle Corporation. Careful planning and resource dedication is essential to the successful deployment of SLA during a new implementation. Prior to that Mr.3) Use a hybrid of 1 and 2 – Use existing AA/Ag at point of upgrade.C. Migrate to SLA when and if beneficial Planning New Implementations When planning to deploy SLA in a new implementation. Charity is a member of the American Institute of Certified Public Accountants (AICPA) and the Project Management Institute (PMI) Mr. Mr. D. Charity was a Senior Manager in the Oracle Service Line at CapGemini’s and Ernst & Young’s Management Consulting Organizations. Metro Area). Mr. Jr. Charity and PMSC. They are: 1) Allocate a significant amount of time and resources to this part of the implementation 2) Design SLA in parallel with Projects’ implementation – Don’t wait until the end! 3) Understand the inputs.

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